United States
U.S. equities ended lower in regular trading but reversed course in the after-hours session, as Nvidia delivered a much-anticipated earnings report that beat expectations and revived bullish sentiment around artificial intelligence. The S&P 500 slipped 0.6%, while the Nasdaq and Dow Jones both dropped by 0.5% and 0.6%, respectively. However, in post-market trade, the S&P 500-tracking ETF (SPY) rose sharply, driven by Nvidia’s results.
The world’s most valuable chipmaker surged more than 5% after hours following a blowout quarter. Nvidia posted a 69% increase in revenue to US$44.1 billion, with earnings per share of US$0.96 on an adjusted basis, despite a US$4.5 billion writedown due to lost China business. The outlook for the current quarter came in strong as well, with CEO Jensen Huang confirming that production of the company’s Blackwell AI chips was now in full swing.
Analysts described the result as a potential turning point for broader equity markets. “This is a very important results print and guide for the broader tech world – it shows the AI Revolution is heading into its next gear of growth despite the Trump tariff war playing out,” said Daniel Ives of Wedbush Securities. Interactive Brokers’ Steve Sosnick called it the most consequential earnings report of the quarter, noting Nvidia’s outsized influence on market sentiment in the current AI-driven cycle.
Investor focus also remained on developments in U.S.-China trade tensions, with the Trump administration reportedly weighing new restrictions on the export of chip design software to China. This pushed shares of Cadence Design Systems and Synopsys sharply lower during regular trading. Meanwhile, Tesla confirmed plans to begin its robotaxi service in Austin on June 12, adding to the mixed bag of corporate headlines.
In fixed income, Treasury yields moved higher before retreating slightly following strong demand at a US$70 billion five-year note auction. The 10-year yield settled at 4.47%. The U.S. dollar advanced 0.3% on the Bloomberg Dollar Spot Index as investors digested the Fed’s latest meeting minutes, which suggested a continued wait-and-see approach to rate cuts.
Europe
European equities retreated as traders awaited Nvidia’s earnings and continued to monitor budget negotiations in the U.S. The Stoxx Europe 600 index fell 0.6%, snapping a two-day winning streak. Miners and retail stocks underperformed, while real estate and autos showed resilience. Government bond yields across the continent resumed their upward march, with Germany’s 10-year Bund yield climbing two basis points to 2.55%.
Among single-stock movers, French chip supplier Soitec plunged by as much as 26% after it withdrew its 2026 revenue and margin guidance, citing heightened uncertainty in global semiconductor markets. In the UK, Greggs also slipped after analysts at Shore downgraded the stock to ‘hold’ from ‘buy’, citing valuation concerns.
Sentiment across the region remained cautious, tempered by ongoing concerns over global fiscal deficits and the political debate in Washington surrounding Trump’s proposed tax reforms and spending plans. EU trade commissioner Maros Sefcovic is set to meet with U.S. trade representatives later this week in an attempt to secure a deal before the July 9 tariff deadline.
“The market is awaiting a clearer picture on AI demand and the policy path from Washington,” said Daniel Murray of EFG Asset Management. “Nvidia’s earnings release will be an important check point for markets, because of the implicit messages for AI demand more broadly.”
Australia
The Australian sharemarket edged lower on Wednesday, erasing earlier gains from a positive U.S. lead. The S&P/ASX 200 Index declined by 10.7 points, or 0.1%, to close at 8,396.9. The index had touched its highest intraday level since mid-February before being dragged down by selling in the financial sector. The All Ordinaries also ended the day 0.1% lower.
Profit-taking in the banks led the retreat. Commonwealth Bank slipped 0.9% to $173.79, while Macquarie erased early gains to finish flat at $209.99. Despite the overall weakness, the ASX remained within 2% of its February 14 peak.
Technology shares outperformed, continuing to track gains in U.S. peers. NextDC rose 2.5% to $13.29, TechnologyOne added 2.4% to $40.06, and Block surged 4.9% to $96.19. The sector has been buoyed by optimism surrounding Nvidia’s results and the broader AI investment theme.
Energy stocks also rallied. Woodside jumped 3.2% to $22.12 after the federal government approved the extension of its North West Shelf gas project, while Santos rose 1.9%. Coal miners Whitehaven and Yancoal added 2.7% and 1.5%, respectively.
On the downside, ALS Limited dropped 7.6% to $16.30 after raising $350 million via an institutional placement. Mineral Resources declined 5.5% after lowering its iron ore production guidance for the second time this year. Fisher & Paykel slid 4.8% to $32.49 despite a 43% jump in full-year profit, as investors took profits following the recent rally.
ASX futures were up 13 points, or 0.2%, indicating a modestly stronger open today. Nvidia’s positive earnings surprise and the rebound in U.S. futures may support further upside. However, some analysts warn that stretched valuations and macro uncertainty could cap gains in the short term.
Commodities
Commodities traded with mixed sentiment overnight. Oil prices rose as traders weighed the potential for additional sanctions on Russian energy exports. Brent crude added 1.3% to US$64.92 a barrel, while West Texas Intermediate gained 1.1% to US$61.55.
Gold was flat, closing at US$3,287.69 an ounce, holding firm despite a stronger U.S. dollar. Silver eased slightly. Traders are watching for further signals from the Fed on interest rate moves, which could impact demand for safe-haven metals.
Iron ore continued its recent downward drift, slipping 0.2% to US$95.00 per tonne as concerns over Chinese industrial demand linger. Industrial metals were similarly weak, with copper prices easing both in London and on COMEX.
In digital assets, Bitcoin lost 1.7% to trade at US$107,424, while Ether fell 1.9% to US$2,617.86.
The Australian dollar weakened 0.3% overnight to US64.27¢, pressured by a strengthening greenback and softening commodity prices. In bond markets, the yield on Australia’s 10-year government bond rose to 4.33%, tracking global moves.
Economic Calendar
US:
- GDP (QoQ Q1) Second Estimate 10:30 pm
- Initial Jobless Claims 10:30 pm
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
